KCRag Forum

Why is the Carnival Building so valuable to get that price?  Did they overpay, or is the market for renovated older buildings improving?  This is the building on the SW corner of 8th Street and Broadway that used to be called the Isaacs Building and is home to Trozzolo Communications.

http://kansascity.bizjournals.com/kansa ... ory12.html

Friday, February 8, 2008

Investor group adds Carnival to its party on Broadway

Kansas City Business Journal
Jim Davis

Colorado-based investors who own two century-old buildings in Kansas City's Garment District added a third with their Jan. 28 purchase of the Carnival building.

Adam Wallace, one of the buyers, wrote in an e-mail interview with the Kansas City Business Journal that the fully leased building's location at Eighth Street and Broadway and its former owners' restoration make the property a long-term hold.

Wallace's group, 800 Broadway LLC, paid $3.9 million, about $125 a square foot of usable space.

The square-foot price is more than double the latest sales of downtown high-rises and approaches prices paid in recent months for office buildings in Southern Johnson County.

This building was orginally built for the Harvey-Dutton Dry Goods Company in 1903. The structure was designed by local architects Adriance and John Van Brunt. The orginal address was 802 Broadway, although I believe now the building address is 800 Broadway.

It is the building with the white, horizontal bands on it on the right side of the photo.

I am absolutely blown away by this.  Good for the two good guys that owned that building.  They did an awesome job when they renovated the property 10/12 years ago.  Don't know what the buyers were thinking though, the income from the property doesn't come close to supporting this purchase price and there is no parking. 

We have arrived, and I missed it!

Perhaps they have a feeling they are definitely going to get their money's worth?

Is property value rising downtown? I would assume so, with all the recent expansions and renovations.

They already own 804/806 and 808 Broadway.  The Carnival Bldg had parking arranged with the lot behind the bldgs.  I am pretty sure they own the bldg on Broadway that has the Subway in it.

I am surprised it is twice that of JoCo office rates.  I hope this is a good thing for dt and doesn't slow growth!

Stalker of Pumpkins, it's double the price of recent downtown building sales, and APPROACHES prices they have been getting in Johnson County.

This supports the contention I've made in the past that restored historic buildings can command a premium. A restored historic building is often  more desirable for some tenants than an ordinary office building with the same square footage.

The other thought I had is because they have assembled three buildings in close proximity to each other, I wonder if they are assembling a block of buildings to package to a larger tenant?

They may be holding the buildings long-term waiting for the effects of the Sprint Center, P&L District, the PAC, and potentially the light rail line to be in place.  All those combined would increase value over the long haul.

Does anyone have a recent photo of the Carnival Building?

FangKC wrote: Stalker of Pumpkins, it's double the price of recent downtown building sales, and APPROACHES prices they have been getting in Johnson County.

This supports the contention I've made in the past that restored historic buildings can command a premium.

NO! Tear down and build beige buildings with fake brick exteriors downtown!  &&&

The floors in the 804-808 bldg do not match the floors in either the Carnival Bldg or the property owned by DST on the other side.

FangKC wrote: Stalker of Pumpkins, it's double the price of recent downtown building sales, and APPROACHES prices they have been getting in Johnson County.

Whoops, I read that too fast eh?  Well that's good then!

is it me or is that old picture really awesome with trains on their own ROW going right through downtown?  boy would that be sweet to have.

That was a neat line.  It had an elevated section over Delaware and Main, and went through a tunnel under the bluff through the West Bottoms on an elevated line.

Even if no one has a current picture, I can almost bet you'll have a few by the end of the weekend.

shaffe wrote: is it me or is that old picture really awesome with trains on their own ROW going right through downtown?  boy would that be sweet to have.

Pictures from the tour I went on here:

http://forum.kcrag.com/index.php?topic= ... 318543#new

I think that this is further proof that all the money and effort that has gone into downtown has not been wasted. Imagine the city getting double the property tax for all the properties in downtown in a few years time than they got a few years ago. Throw in increased sales tax, more people paying the e-tax and higher notoriety for the city, and I think we will be THE example nationally on how to renovate a pathetic downtown to something that is vibrant and sustainable in a very short period of time.

yep.

Kansas City Museum Opening Downtown Exhibition Space in the Historic Garment District

The Kansas City Museum is opening downtown exhibition space this summer in the 800 Broadway building in the heart of the Historic Garment District.

The 3,300 square-foot space on the first floor of 800 Broadway will feature both displays and programming beginning Aug. 16, according to a release from the museum. Hours will be Wednesday through Saturday from 10 a.m. to 4 p.m. It will operate in conjunction with the Historic Garment District Museum located across the street at 801 Broadway.

http://cityscenekc.com/kansas-city-muse ... -district/

To be converted into 47 loft-style apartments with ground-floor commercial space

https://www.bizjournals.com/kansascity ... elect.html

Key quotes from the article:

"Buland said the Carnival Building is the first in a series his investment group seeks to acquire this year for mixed-use redevelopment near the Quality Hill neighborhood."

So it sounds like more of these developments are coming

"There's a lot of lofts, but you might as well be walking past a four-block-long parking lot down there," said Buland, of the Carnival Building's surroundings. "There's nothing to go into. ... What we're trying to do is, every block or two, add more of that walkable, street-facing activated space."[

They're trying to make most of them have street level activation

AlkaliAxel wrote: ↑Mon Jul 11, 2022 4:16 pm Key quotes from the article:

"Buland said the Carnival Building is the first in a series his investment group seeks to acquire this year for mixed-use redevelopment near the Quality Hill neighborhood."

So it sounds like more of these developments are coming

"There's a lot of lofts, but you might as well be walking past a four-block-long parking lot down there," said Buland, of the Carnival Building's surroundings. "There's nothing to go into. ... What we're trying to do is, every block or two, add more of that walkable, street-facing activated space."[

They're trying to make most of them have street level activation

I hope so. Broadway could use a road diet as well. This area has crazy potential, a mix of new construction and street level activation on older loft buildings, similar to what happened on Delaware, and you would have a great urban Boulevard.